Consider the Following Financial Information for Classic City Ice Cream

question 55

Multiple Choice

Consider the following financial information for Classic City Ice Cream Corporation: If the return on equity is 20%,what was Net Income for 2012?

• A) $25,000
• B) $40,000
• C) $50,000
• D) $65,000

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Definitions:

Directors

Directors are individuals elected to a corporation's board to oversee and guide the organization's policies and direction.

Fiduciary Duty

A legal obligation of trust requiring an individual to act in the best interests of another party, often seen in the context of trustees, guardians, and financial advisors.

Shareholders

are individuals or entities that own shares in a corporation, giving them partial ownership and possibly the right to vote on corporate matters.

Management

The process of directing, controlling, and overseeing the operations and activities of a business or organization.